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In many respects, the investment trust was the progenitor of the investment company in the U.S. The name is somewhat misleading, given that (according to law) an investment trust is not in fact a  trust  in the legal sense at all, but a separate legal person or a company.This matters for the fiduciary duties owed by the trustees and the equitable ownership of the fund's assets.he first investment trust was the Foreign & Colonial Investment Trust, started in 1868 to give the investor of moderate means the same advantages as the large capitalists in diminishing the risk of spreading the investment over a number of stocks.
DEFINITION of 'Investment Fund'. A supply of capital belonging to numerous investors that is used to collectively purchase securities while each investor retains ownership and control of his or her own shares.n investment fund provides a broader selection of investment opportunities, greater management expertise and lower investment fees than investors might be able to obtain on their own. Types of investment funds include mutual funds, exchange traded funds, money market funds and hedge funds.